Sheridan Trust & Savings Bank (Chicago, IL)

Episode Information

Episode UID
5346680791578
Episode Type
Run → Suspension → Closure
Bank Type
trust
Bank ID
534668079 hash
Start Date
June 8, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
fe5cc74098652a81

Response Measures

None

Description

Closure followed depositor uneasiness tied to publicity about the Foreman group merger; receivership consent given July 1931.

Events (4)
1. June 8, 1931 Run
Cause
Local Banks
Cause Details
Publicity about the Foreman group merger sparked depositor uneasiness and withdrawals, depleting reserves.
Measures
Turned affairs over to examiners; attempted to open but failed.
Newspaper Excerpt
Six Chicago neighborhood banks ... failed to open for business today. Three ... were said to have acted to turn their affairs over to examiners because of publicity given the Foreman merger and uneasiness among depositors.
Source
newspapers
2. June 8, 1931 Suspension
Cause
Local Banks
Cause Details
Depleted reserves and shrinkage of deposits following publicity and depositor uneasiness tied to the Foreman merger.
Newspaper Excerpt
Six Chicago neighborhood banks ... failed to open for business today. All six closings were declared due to depleted reserves and shrinkage of deposits.
Source
newspapers
3. July 3, 1931 Other
Newspaper Excerpt
Included in the recovery, it was believed, was $30,000 in bonds stolen last November from the Sheridan Trust and Savings bank, North Side institution, since closed. The robbery was not a factor in the bank's suspension.
Source
newspapers
4. July 22, 1931 Receivership
Newspaper Excerpt
Depositors of the $10,000,000 Sheridan Trust. and Savings Bank have consented to the appointment of a receiver, abandoning plans to reopen the institution.
Source
newspapers

Newspaper Articles (11)
1. January 8, 1930 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, January 8, 1930

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Article Text

GIGANTIC BANK MERGER IN CHICAGO First National Takes in Foreman National and Affiliate Institutions CHICAGO, June 8.—(U.P.)—Two of the most important mergers in Chicago history brought about the shifting today of more than $1,250,000,000 in bank resources and creation of the second and third largest financial institutions in the loop. Announcement of the gigantic consolidation was made after a large group of leading bankers had been in continuous conference for almost forty hours. Thru the mergers, the First National bank and its affiliate, the First Union Trust & Savings bank, absorbed the Foreman-State National bank and its affiliate, the Foreman-State Trust & Savings bank; and the Central Trust Co. of Illinois and National Bank of the Republic were consolidated to become the Central Republic Bank & Trust company. CHICAGO, June 8.—(U.P.)—Six Chicago neighborhood banks, two National and four State, failed to open for business today. Three of the banks were affiliated with the Foreman group, involved in one of the two loop bank mergers made over the week-end. These three were the Washington Park National bank, South Side Trust and Savings bank and Sheridan Trust and Savings bank. The other institutions which closed were the Cheltenham Trust and Savings bank, Industrial State bank and Inland-Irving National Trust and Savings bank. Under the new arrangement, the First National-First Union Trust company group becomes a $900,000,000 institution, ranking second in size only to the Continental Illinois Bank & Trust company, which became Chicago's (Concluded on Page 2)

2. June 8, 1931 Muncie Evening Press Muncie, IN

Article Text

CHICAGO BANKS ARE CLOSED Small Institutions Report Loss in Deposits. CHICAGO, June 8.—Six Chicago neighborhood banks, two national and four state, failed to open for business today. Three of the banks were affiliated with the Foreman group, involved in one of the two loop bank mergers made over the week-end. These three were the Washington Park National Bank, South Side Trust and Savings Bank and Sheridan Trust and Savings Bank. The other institutions which closed were the Cheltenham Trust and Savings Bank, Industrial State Bank and Inland-Irving National Trust and Savings Bank. Reserves Depleted. All six closings were declared due to depleted reserves and shrinkage of deposits. In addition, the three affiliates of the Foreman group were said to have acted to turn their affairs over to examiners because of publicity given the Foreman merger and uneasiness among depositors. The Washington Park National Bank had $600,000 capital and $439,000 surplus. The Inland-Irving Trust and Savings Bank reported $525,000 capital and $250,000 surplus. Figures on the deposits in these two institutions were not available. Figures on the state banks, as announced by the state auditor's office, were: South Side Trust and Savings, capital $1,000,000, deposits $7,000,000; Sheridan Trust and Savings, capital $1,000,000, deposits $12,242,000; Cheltenham Trust and Savings, capital $200,000, deposits $535,000; Industrial State, capital $100,000; deposits $650,000.

3. July 3, 1931 Daily Republican-Register Mount Carmel, IL

Article Text

securities stolen from an unspecified number of Chicago banks. Included in the recovery, it was believed, was $30,000 in bonds stolen last November from the Sheridan Trust and Savings bank, North Side institution, since closed. The robbery was not a factor in the bank's suspension.

4. July 19, 1931 Chicago Tribune Chicago, IL

Article Text

Will Appoint Receiver for Sheridan Auditor Oscar Nelson yesterday that appoint Monday the Sheridan Trust Savings bank, affiliate Foreman six deposit liabilities off $5,276,000. had officers of the Illinois the National groups come in the week to over the books Trust to their taking Mr. Nelson explained. Neither group was interested, the receivership to follow." Supplementing the auditor's anthe committee of the closed issued that the reopening of the bank at this time imhad the in new needed before the to reopen. Assets Drained Away. present of the bank best by calling tion to the fact that on the first the current year deposits amounted to slightly whereas the time closing the deposit liabill tiese the depositor's pointed approximately has the institution its of that remain, the auditor listed doubtful worthless. This does mean that these not yield substantial over period of but they are not the kind of assets which the state auditor in of the bank." Members of Committee. The committee, comprising Stanley B. John Bowers, L. E. W. Miles, Thomas D. Bell, had retained Roy D. Keehn legal The mittee that no to positors support has authorized. Finally, the announcement stated. the committee as group has not to be identified with the the group of depositors who, under the of Mr. Bell and Attorney Lewis Jacobhave been pledges to prevent receivership. Threatens Suit. Learning of the impending appoint ment receiver, Attorney Jacobissued statement threatening enjoin the receiver from rificing assets auctioning bonds if, in the opinion of depositors, better values by ordinary or It great shock to hear that the will ceiver,' Our will be stopped however. If receiver will be from as sets holding if, the opinion of depositors, better values could be obtained by ordinary realization reconstruction. Replying to Mr. Neltry son pointed out that in the case national is appointed immediately upon the closing of the banks. Statement on Noel Bank. The Noel State bank, Milwaukee North which closed voluntarily on June 18 after heavy its side that is likely to ment of its R. Noel. state on the bank's this week. Until get the audit know what the will make for reorganization, such move Mr. Noel much regret to see liquidation by see no other way out this time. am we will be found solvent will take time handling of the assets to establish this."

5. July 22, 1931 The Washington Times Washington, DC
Article from The Washington Times, July 22, 1931

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Article Text

CONSENT TO RECEIVER CHICAGO, July 22.-Depositors of the $10,000,000 Sheridan Trust. and Savings Bank have consented to the appointment of a receiver, abandoning plans to reopen the institution.

6. December 28, 1931 Chicago Tribune Chicago, IL

Article Text

Judge Asks Assembly Action to Protect Bank Deposits Circuit Judge Michael Feinberg, who for the last eight weeks has been conducting hearings to aid bank receivers to cover assets of made public yesterday letter he had written to Gov. Emmerson urging the pointment of legislative mittee to probe the state banking situation with view to in the present Illinois banking act. Conditions discovered in sixty banks, ing which he has conducted hearings, demonstrate that the safeguards now afforded bank depositors are woefully inadequate, the judge asserted. He offered to appear before any committee the governor might appoint to reveal some of the conditions coming under his observation. As a result of the hearings before me upwards of $480,000 has been collected for the benefit of depositors of closed banks,' the judge wrote. condition of affairs respecting the internal management of these banks. conditions which indicate clearly the need for protection in the future for depositors of that is woefully lacking in our present banking laws. Unless better protection is afforded the depositors of banks than is possible under the present banking act there is no guarantee against a repetition of these practices. 'May presume sufficiently to sug gest that in my opinion a committee of the house and senate be appointed by the present session of the legislature, empowered to investigate these closed banks and be prepared to submit comprehensive report to the next regular session of our legislature. My thoughts being that this work could be finished in time for the next regular session of the legislature, 80 that needed legislation may be adopt. ed without would be perfectly willing to give such a the benefit of my time and the information gathered in the hearings had before me. This morning Judge Feinberg will resume his investigation of the closed Sheridan Trust and Savings bank. Among witnesses to be heard will be David H. Jackson, former chairman of the Illinois commission; his brother, Andrew Jackson, and number of north side business men, all of whom are indebted to the bank.

7. January 1, 1932 Chicago Tribune Chicago, IL

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DIRECTOR HELD SEVERAL HOURS IN BANK PROBE Freed on Pledge to Give Answer on Debt. A. Burnette, former director of the Sheridan Trust and Savings bank, was held in the custody of for several yesterday alleged evasive replies to by Circuit Burnette, according to testimony was worth year He told the judge to pay anything on a debt he last to disclose hidden to the bank for benefit of the Deposits totaled when the bank closed. Weeps After Conference released and told to with his The was when he from the after lengthy talk with the Judge Feinberg advised him, he said that he and his wife should their assets to aid starving bank Bur nette declared would have an answer for the judge Monday. Burnette Euclid Park and president of the Cookware of America, 1105 Lawrence When his ability to pay his Burnette declared that wife now holds all his property He has given her title to their home, a acre farm near and title to all his stock in he said. Are you to hide behind the judge inquired Wants to Stage Comeback. did what could in order that comeback, the wit ness This followed by the judge's order the bailiff to Burnette Two bank debtors, who previously an pay anything agreed to turn over certain assets Samuel Keller indebted for as signed the month to building the George McCabe, indebted for $29 000, turned to the receiver a half interest in property at Fullerton and Long ave nues, title 31 apartment build ing, and $40,000 in life insurance on which he has already borrowed. Attorney Swanson yesterday that as result of the acof his office to the closed Citizens Trust and bank promised to pay and on they owe the bank debtors to the bank been examined by Mr. and his assistant, Henry Ayers. RAIDERS ARREST TWENTY. West last on and arresting 20

8. January 14, 1932 Chicago Tribune Chicago, IL

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AUDITOR NELSON WINS SEPARATE BANK CASE TRIAL His Plea for Early Hearing Denied. State Auditor Oscar Nelson was granted separate trial yesterday by Circuit Judge Edward D Shurtleff at on charge in connection with the failure of the Waukegan State bank last June 17. The auditor lost his plea for an early trial after heated argument State's Attorney Smith of elected to try Norman O. Geyer president of the defunct bank. and George Woodruff for. mer the National Bank of the Republic of Chicago, before Nelson is arraigned. Geyer and Wood. ruff were scheduled to go on trial Monday, plea for in behalf of Woodruff was denied. Indictments Charge Fraud. indictments against Nelson, Geyer, and Woodruff charge con spiracy to defraud in with the failure of the bank the bank's closing there were deposits of $1,224,000 and only $38,000 in cash on Prosecutor Smith has charged. Two others named at the same time are trials. William H. Miller. former vice of the Chicago bank, be tried in Lake county by Judge and John Murray former vice presi dent of the is to be tried in county by Circuit Judge Ralph Dady David Joslyn Nelson. asked that Nelson be tried first since he is candidate for reelection and the trial of oodruff and Geyer may not end until after the primaries. He months will be spent in attempting to prove the insolvency of the Waukegan bank before its actual closing. as charged by to change his decision to try the state auditor Denies Politics in Trial. "Of course, you know this insolvency applies to politics as well as other the judge then, Joslyn, are busted. We're Smith leaped to his feet to that there was in his Joslyn his charge that there was politics in the The judge smoothed over the disAttorney George T. Bucking ham, representing made plea for severance in behalf of his which Expect Sheridan Dividend. Floyd E. Britton, attorney for the of the defunct Sheridan Trust and bank, reported almost in and securities will soon be available for the bank's de positors. He made his report before Circuit Judge Michael Feinberg who Is seeking uncover assets hidden from the Britton discussed in detail trans actions between the Foreman National bank and the Sheridan Trust and Savings bank spiking rumors that in securities had been moved from the latter bank after its closing He said securi ties, as deed to loan of 780,000 moved after the closing as the deed Securities Up for Sale. of the securities $442,391 is now available for sale aid depositors. In addition, he said, there is $530,000 in on deposit with the Bank and the the judge quesMrs. Hannah Zuker 5329 Kento the Mrs. Zuker was as Hetty she reputed to have real estate holdings four and five million dollars. She told the Judge she was in default on all her properties and was on her sons for and she now lives on $20 The judge her to return this morning with her sons.

9. January 25, 1933 Chicago Tribune Chicago, IL

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DEFUNCT BANK OWNERS EVADING STOCK LIABILITY Reveal Laxity of State Law Enforcement. Only 1½ per cent of the stockhold. ers' liability has been collected for creditors of the 140 closed state banks in Cook county while almost 20 per cent of such liability has been collected for creditors of the 19 Cook county national banks in liquidation. This was revealed yesterday from study of receivers' reports and records of the state office. The total liability of the stcckholders in the 140 state banks-100 per cent over the amount of stock 40 million dollars. Collections to date have totaled little more than $600,000 In the case of the 19 banks the liability is and total of has been collected from this source for the creditors. Difference in Laws. This disparity is ascribed by lawyers receiverships and foreclosures to the different methods of against the stockholders, as provided and state bank ing laws. and to laxity in the enforcement of existing state legislation. When national bank is closed receiver is appointed by the controller of the currency at Washington and the receiver immediately adds 100 per cent stock to the assets the bank. He then sends out claims to the stockholders, and if they do not comply within reasonable time goes into federal state court of equity and obtains judgments against The Illinois banking act imposes no upon the receiver, nominated by the state auditor, to collect from the The law vides any creditor may suit in court equity and that the may appoint a receiver handle the double liability collections. This leads to the filing of "dummy suits in the interest of the stockholders themselves tiements can be made. according to the for the bar Makes Delay Possible. It also makes possible, they declare long delays that permit the dissipation concealment of assets the collection of excessive fees by and their lawyers. settlement is effected suits filed against the stock holders are referred to masters chancery for hearings and the fees come out of collections. This is in addition to fees for the receiver under the liability usually 10 per cent of all fees for the receiver's from 10 to 25 and fees for the creditors' attorneys in the same amount. The also makes possible multiplicity of suits. In the case of the Kaspar American State bank different creditors' suits were filed and three receivers appointed by the three judges before the creditors agreed upon receiver. Settle for 40 Per Cent. The for bank creditors the double liability law includes $530,000 from settlements made by stockholders of three banks. to the state auditor's office. These South Side Sav. ings bank. the Sheridan Trust and Savings and the Northwestern Trust and Savings bank. Receivers and their attorneys took $132,000 in fees out of total settlement of $662,000. which was 40 per cent of the liability. The state auditors' reports on the of banks do not show what are made on stock ments, such collections, if being combined with others under the head ing Receipts from collections, etc., to be disbursed." The reports of the supervising receiver of the national banks, however, separate entries entitled Collections from stock assessments."

10. February 10, 1933 Chicago Tribune Chicago, IL

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KERNER IN COURT TO FIGHT LOSS TO BANK CREDITORS Opposes Waiving Title to Site Winning Award. Attorney General Otto Kerner ap. peared in for the first time since he took office to press his campaign against costs in bank receiverships and Before Circuit Judge Joseph Burke he vigorously opposed the petition of bank receiver to waive title to property about to receive $12,000 condemnation award in return for $2 500. The attorney general charged the prayer of the petition is audacious and ridiculous His assistant, George S. Lavin, asked that the receiver be called into court to explain his action. The receiver Ernest of the closed Sheridan Trust and Savbank. $12,000 Award Fixed by Court. The property is strip 33 feet wide and 230 deep at Estes and Western avenues. It was deeded to the bank by Earl G. Gubbins after the bank closed to secure portion of total indebtedness of $50,000. After the deed was executed the city undertook the Improvement of Estes avenue and ht condemnation proceedings against the property. An award of $12,000 was fixed by the courts. In his petition Ridgeway stated that Gubbins came to him and told him he had no title to the property, even though he pledged it for loan. Gubbins was said to have declared the strip belonged to the adjoining Park Castle apartments, of which he was one of the owners. Suspicious of Generosity. Ridgeway held the offer of $2,500 to be reasonable in view of the circumstances. Attorney Perry B. Brelin of the law firm of Brundage, Landon & Holt, attorneys for the receiver, said the building had paid attorneys' fees of $2,500 the condemnation proceed ings, and the owners were willing to pay taxes of $3,000 and assume judg. ments of $10,000 against the land. There is something funny here," Attorney Lavin said. The award is one of $12,000. Yet the building is willing to pay $2,500 to the bank, $2,500 to lawyers, $3,000 in taxes, and meet judgments of $10,000. No one is so generous without reason. Allows Time for Inquiry. Further it peculiar that the receiver so readily accepts Gubbins' story. when there is nothing to substantiate other than his word. The records the title to the property is the hands of the bank. Why should the receiver be anxious to waive it? We want to go into this and find out what, if anything, is behind it. There is mystery here that should be brought to the attention of the court." At the request of the attorney gen eral, Judge Burke continued the hearing on the petition for two weeks to permit an investigation.

11. March 31, 1935 Chicago Tribune Chicago, IL

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$700,000 Mailed to 30,000 Depositors of 2 Closed Banks Checks amounting to almost $700,000 will be received tomorrow by 30,000 depositors with funds in the closed Woodlawn Trust and Savings bank and the Sheridan Trust and Savings bank, State Auditor Edward J. Barrett announced last night after the checks had been placed in the mail. The two banks were among the larger outlying institutions to fall during the various runs and have been among the slowest to return money to depositors. Woodlawn Trust and Savings bank, 1180 East 63d street, is paying a 5 per cent dividend, amounting to $245,000, to 14,000 depositors. This brings the total return to 35 per cent. The bank closed June 22, 1931. Sheridan Trust and Savings bank, 4753 Broadway, is paying a 10 per cent dividend, amounting to $450,000, to 16,000 depositors. This brings the total return to 30 per cent. The bank closed June 8, 1931. When the Sheridan bank closed it owed the Continental Illinois National Bank and Trust company $1,100,000. This has been paid in full. The bank also owed the Reconstruction Finance corporation $1,100,000, which has been reduced to $150,000. Woodlawn Trust and Savings bank has paid in full a debt of $1,100,462 on bills owed when the bank closed. It also had a postal savings deposit of $450,000, but collateral more than sufficient to cover the claim is held by United States postal authorities. Analysis made at the end of 1934 indicated that further return will be made to depositors, although prospects point to a comparatively small final payout. Losses on converting the best assets to cash had amounted to 20 per cent at that time.